Pharmaceutical company Regeneron is acquiring the core genetic testing business of 23andMe for $256 million following a court-supervised bankruptcy auction, marking a pivotal turn for the once high-flying consumer genomics startup.
The deal, announced Monday, gives Regeneron access to 23andMe’s genomics services and its vast database of genetic and personal information from over 15 million users. Regeneron plans to leverage this dataset to accelerate drug discovery and development while pledging to uphold strict privacy, security, and ethical safeguards.
A Cautionary Tale in Consumer Genomics
23andMe’s downfall began in 2023 after a series of security breaches compromised the sensitive data of approximately 7 million users. The breaches drew intense public scrutiny and triggered class-action lawsuits, forcing the company to seek Chapter 11 bankruptcy protection in March. Consumer trust in DNA testing services plummeted, and 23andMe’s stock value collapsed, hitting near-zero levels by early 2024.
Founder and CEO Anne Wojcicki stepped down amid the turmoil, leaving the company’s future uncertain. With mounting concerns about who might gain access to its massive trove of genetic data, the bankruptcy court’s asset sale process sparked alarm among privacy advocates and policymakers.
There were real fears that such a sensitive dataset could fall into the hands of unethical buyers or even foreign adversaries. Against that backdrop, Regeneron emerged as the lead bidder and has now committed to compliance with all applicable data protection laws and 23andMe’s existing privacy commitments.
Regeneron’s acquisition of 23andMe’s genetic database aligns with its long-standing focus on genetics-driven drug research. The pharma giant has previously partnered with institutions like the UK Biobank to unlock insights from large genomic datasets. With 23andMe’s user base, Regeneron can now deepen its understanding of genetic links to disease and tailor its therapeutics pipeline accordingly.
Importantly, Regeneron is not acquiring 23andMe’s Lemonaid Health telehealth business, which remains a separate asset.
The bankruptcy court will review and consider the acquisition on June 17. If approved, the deal will bring new life to 23andMe’s data assets—but under an entirely different mission.
